The Ministry of SMEs and Startups and the National Tax Service said on the 11th they will link policy support with tax administration support to help the growth of 2,559 promising artificial intelligence (AI) small and midsize corporations and startups.
The Ministry of SMEs and Startups (MSS) this year supported AI model and service development and the adoption of AI technology in industrial sites through 20 programs, and delivered the list of supported corporations to the National Tax Service. The targeted programs include AI technology development and commercialization of AI application products, preferential guarantees for AI and AX (AI transformation), AI-based smart factories, deep-tech startup support, and global accelerating.
The National Tax Service will finalize the targets for tax administration support based on corporations supported by the Ministry of SMEs and Startups (MSS). It plans to minimize future tax audits and to give priority to pre-screening for research and manpower development tax credit and to consulting on corporate income tax credits and reductions. It will help cash flow by extending payment deadlines and making early refunds, and it will also provide dedicated tax consultations for AI corporations.
AI startups within five years of founding will be excluded from selection for regular tax audits. Other AI small and midsize corporations may defer regular tax audits for two years upon a taxpayer’s request, with a three-year deferral applied to corporations located in provincial areas. If there is no suspicion of tax evasion, they will also be excluded from return verification targets, lowering the burden of tax checks so they can focus on technology development and commercialization.
Minister Lee So-young of the Ministry of SMEs and Startups (MSS) said, “The competitiveness of the AI industry depends on creating an environment where startups with innovative technologies and ideas can grow rapidly,” adding, “Through this collaboration, the Ministry of SMEs and Startups’ technology development (R&D), commercialization, finance, and global expansion support and the National Tax Service’s tax administration support will be connected to build a foundation that enables promising AI small and startup firms to focus on technology development and growth.”
National Tax Service Commissioner Lim Gwang-hyun noted, “AI small and startup firms are key corporations that will lead technological innovation and the creation of future growth engines,” and added, “It is important to reduce tax-related difficulties encountered during growth so corporations can focus on research and development and business.”
